AI is driving a historic buildout of digital infrastructure. As compute demands surge, data centers are expanding at an unprecedented pace, bringing rapid growth in electricity consumption, new pressures on grid capacity, and rising demand for water to cool advanced systems. What does the rapid expansion of data centers mean for local water systems, electricity reliability, land use, and economic development? How should policymakers balance the promise of AI-driven growth with responsible stewardship of natural resources? And what policy tools at the local, state, and federal levels are needed to modernize infrastructure while safeguarding public trust?